Many Americans are unknowingly giving up up to $180,000 in Social Security benefits over their lifetime—often because they claim retirement benefits too early without a long-term plan.
According to Lynn, a retirement planner and content creator from Her Second Half, the most common and costly mistake people make is applying for Social Security at age 62, the earliest possible age. While that may seem appealing, doing so locks in a permanently reduced benefit.
Why retiring at 62 could cost you six figures
Social Security calculates benefits based on the age you start collecting and your earnings history. Claiming at age 62 can cut your monthly check by as much as 30% compared to waiting until full retirement age (66 to 67, depending on your birth year). Over 20 to 30 years, that smaller check adds up.
Lynn estimates that starting early can result in a lifetime loss of up to $180,000 for someone who lives into their 80s or 90s. While some may need to retire early due to health or job loss, she urges Americans to understand the long-term impact before filing.
3 proven ways to maximize your Social Security payment
Financial planners agree: increasing your Social Security benefit isn’t about luck—it’s about strategy. Here are three ways to keep more of what you’ve earned:
1. Delay claiming benefits until age 70
Each year you wait beyond full retirement age adds approximately 8% to your monthly benefit. That increase stops at age 70, but the cumulative gain can mean thousands of extra dollars per year for life.
2. Work at least 35 years
Social Security calculates your benefit based on your 35 highest-earning years. If you have fewer than 35 years of work history, the SSA includes zeros in its average, which lowers your check. Even a few extra years of work can improve your payout.
3. Boost your income during your career
Higher lifetime earnings directly raise your Social Security benefits. Taking on higher-paying jobs or negotiating raises can pay off not just now, but decades later.
Why planning matters
Social Security is more than just a check—it’s a core part of retirement security for most Americans. Yet many people apply for benefits without reviewing how that decision affects their financial future.
“Too many people act on impulse instead of running the numbers,” Lynn says. “The earlier you learn the rules, the better your outcome will be.”
Experts recommend using Social Security calculators, running different scenarios, and consulting a financial advisor before making a decision that’s nearly irreversible.
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